Interest (Grade 12 NSC Matric Mathematical Literacy): Flashcards

% charged for borrowing money over specific time period

Actual rand amount paid for borrowing money

Interest calculated only on original principal amount

Constant each period

Interest = $P \times \frac{r}{100}$

Interest on current balance (principal + accumulated interest)

Increases each period

$A = P \times (1 + r)^n$

Compound (even at lower rates)

Balance after deposit, not full cash price